Equinor Welkin Mill Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

1	General information

The company is a private company limited by share capital, incorporated in England.

Principal activity

The principal activity of the company is the trade of provision of management and technical services relating to the production and sale of electricity.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling which is the functional currency of the entity.

Going concern

The financial statements have been prepared on a going concern basis.

Equinor Welkin Mill Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

Audit report

The Independent Auditor's Report was unqualified. . The name of the Senior Statutory Auditor who signed the audit report on 22 September 2025 was Adam Croney ACA, who signed for and on behalf of Westcotts (SW) LLP.

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Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the costs of assets, other than properties under construction, over their estimated useful lives. There has been no depreciation in the year on the assets, as the assets have yet to be utilised and therefore their residual value is still that of the book value and therefore nil depreciation is currently required.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Equinor Welkin Mill Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2023 - 2).

Equinor Welkin Mill Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

4

Taxation

Tax charged/(credited) in the statement of comprehensive income

	Year ended 31 December 2024 £	9 month period to 31 December 2023 £
Current tax charge	-	-
Deferred tax charge	-	-
Total tax	-	-

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

	Year ended 31 December 2024 £	9 month period to 31 December 2023 £
Loss before tax	(1,313,610)	(818,065)
Corporation tax at standard rate	(328,403)	(204,516)
Effects of:
Expenses for which no deferred tax is recognised	328,403	204,516
Total tax charge/(credit)	-	-

There has been no change to the corporation tax rates for the financial period ended 31 December 2024.
The prevailing rate of UK corporation tax for the period is therefore 25%.

Equinor Welkin Mill Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

5	Tangible assets

	Properties under construction  £	Total £
Cost or valuation
At 1 January 2024	23,665,801	23,665,801
Additions	1,489,297	1,489,297
At 31 December 2024	25,155,098	25,155,098
Depreciation
At 1 January 2024	-	-
Charge for the year	-	-
At 31 December 2024	-	-
Carrying amount
At 31 December 2024	25,155,098	25,155,098
At 31 December 2023	23,665,801	23,665,801

6

Debtors

	31 December 2024 £	31 December 2023 £
Other debtors	528,771	501,914
Prepayments	-	9,520
	528,771	511,434

Equinor Welkin Mill Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

7

Creditors

Creditors: amounts falling due within one year

	31 December 2024 £	(As restated) 31 December 2023 £
Due within one year
Trade creditors	16,885	1,489,044
Accruals and deferred income	12,000	9,251
	28,885	1,498,295

Creditors: amounts falling due after more than one year

	31 December 2024 £	(As restated) 31 December 2023 £
Due after one year
Other financial liabilities	14,705,226	13,612,043

Creditors due after one year comprise an unsecured loan from Equinor New Energy Limited of £13,000,000 and the accrued interest thereon of £1,705,226 (2023: £612,043). The loan and interest are repayable by 2028 and were previously shown as creditors due within one year but they are not expected to be repaid within twelve months.

8	Share capital

Allotted, called up and fully paid shares

	31 December 2024		31 December 2023
	No.	£	No.	£
Ordinary shares of £1 each	15,000,002	15,000,002	15,000,002	15,000,002

 

Equinor Welkin Mill Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

9

Reserves

Profit and loss account:

This reserve records retained earnings and accumulated losses.

10	Parent and ultimate parent undertaking

The immediate parent company is Equinor New Energy Limited, company number 06824625 incorporated in the UK, with a registered office of 1 Kingdom Street, London, W2 6BD.

The ultimate parent undertaking of the company is Equinor ASA (formerly Statoil ASA) incorporated in Norway. Copies of its group financial statements, which include the company, are available from Equinor ASA, 4035, Stavanger, Norway. It is also the parent undertaking of the smallest and largest group of which the company is a member and for which group financial statements are prepared.

The ultimate controlling party is the Norwegian government.

11	Capital Commitments

As at 31 December 2024, the company had contracted to purchase assets relating to a renewable energy facility amounting to £2,574,378 (2023: £2,574,378).